Interest has accrued at 8% on the long-term notes payable since July 1, 2010. The next six-month interest payment at 9% on the bonds is due on March 1, 2011. The discount on bonds payable has not been amortized for any part of 2010; the bonds are dated March 1, 2004, and mature March 1, 2014. (Use straight-line). I'm doing adjusting entry for the year end December 31, 2010. Account Balances: Notes Payable Acct. (LT Liability) 1/1 Balance 43,000 7/1 Increased Mortgage (credit 70,000) balance 113,000 Bonds Payable 1/1 (issued 3/1/04) 275000 (maturity 3/1/14) Discount on bonds payable 1/1 4400 I am pretty sure I understand how to get the interest for the first part of the question, but I am stuck on the amortization of the discount. So far I have: Interest Expense 4090 Interest Payable 4090 For the discount amortization would I just divide the remaining balance of discount on bonds payable by the remaining payments, or am I forgetting some steps. It does not seem like it should be that simple for some reason